Menu costs suggest that sticky prices are ____ for firms but _____ for the economy as a whole
a. optimal; suboptimal
b. bad; good
c. natural; unnatural
d. suboptimal; optimal.
e. suboptimal; suboptimal
A
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Investing all your money in one company is an example of:
A. risk diversification. B. risk pooling. C. risk aversion. D. None of these statements is true.
Anheuser-Busch purchased the Labatt brewery in Canada and has expanded its market and product offerings. This is an example of:
A. foreign direct investment. B. foreign portfolio investment. C. importing. D. exporting.
There are several reasons why incomes are unequal, including differences in luck, experience, and schooling.
Answer the following statement true (T) or false (F)
When the Fed sells a government security to the public, how does it usually receive payment for the security?
A. By accepting checks on bank accounts B. By drawing money out of circulation C. By decreasing member bank profits not distributed by the Fed D. By decreasing reserves in bank accounts at the Fed